HB184 Alabama 2012 Session

Summary

Primary Sponsor

Demetrius C. Newton

Democrat

Session

Regular Session 2012

Title

Jefferson County, occupational tax, rate distribution

Summary

Jefferson County would be allowed to levy an occupational tax on certain individuals doing business in the county, up to 0.45% of gross receipts, with revenues going to the county's general fund.

What This Bill Does

The county commission would be authorized to impose a license or privilege tax on natural persons engaged in business activity in Jefferson County who are not already paying a state or county license tax, or who are subject to certain professional licensing sections, under specified conditions. The tax would be based on gross receipts from the business activity, up to a maximum rate of 0.45% (0.0045) of those receipts, minus amounts withheld for health insurance premiums and retirement contributions. The county could collect the tax through employers and could charge penalties, interest, and costs of collection for late payments, with the money deposited into the county General Fund for public purposes. The act also provides for an exemption related to pass-through income from certain entities and states that if any provision is invalid, the rest remains in effect.

Who It Affects

• Natural persons engaged in business activity in Jefferson County who are not required to pay a license tax under the referenced state/county provisions (or who are subject to certain professional licensing sections) and whose gross receipts are used to measure the tax; they would be taxed on those gross receipts at up to 0.45% minus specified withholdings.
• Employers of those natural persons; they may be responsible for withholding or collecting the tax and could face penalties, interest, and costs of collection for delinquent payments.
• Owners of business entities with pass-through income where the entity’s gross receipts are used to measure an entity license tax; in such cases, the individual’s gross receipts from that activity would not be subject to this tax.

Key Provisions

• The Governing Body (Jefferson County Commission) may levy a Jefferson County Occupational Business Tax on eligible natural persons.
• The tax rate is determined by the Governing Body but cannot exceed 0.45% of gross receipts, minus amounts withheld for health insurance premiums and retirement contributions.
• The tax is collected and remitted to the county, with penalties, interest, and collection costs allowed for delinquent payments, and the proceeds go to the County General Fund.
• An exemption applies if a person’s income is from a pass-through entity and the entity’s gross receipts are used to measure that entity’s license tax; the individual’s receipts from that activity would not be subject to this tax.
• If any provision is finally invalid, the remaining provisions stay in effect; the act becomes effective immediately after the governor signs it.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Jefferson County